Question 1

Relate the pros and cons of defined-benefit plans.

Accepted Answer

Under a defined-benefit plan you receive

Question 2

One of the advantages to a traditional IRA is that it allows you to make a penalty-free withdrawal to purchase your first home.

Accepted Answer

A) True 
 B)False

Question 3

When an employer makes pension fund contributions directly to a trustee who holds and invests those funds,the plan is said to be a(n)

Accepted Answer

A)  defined-contribution plan. 
B)  funded pension plan. 
C)  unfunded pension plan. 
D)  cash balance plan. 
E)  none of the above. 
A)  defined-contribution plan. 
B)  funded pension plan. 
C)  unfunded pension plan. 
D)  cash balance plan. 
E)  none of the above.

Question 4

Why might one want to select the lump-sum payment option for one's retirement funds?

Accepted Answer

A)  Taking the lump-sum can be a hedge against inflation. 
B)  The lump-sum option provides greater flexibility than other options. 
C)  You can invest the funds and perhaps earn a higher return. 
D)  Having access to the funds provides money for emergencies. 
E)  All of the above 
A)  Taking the lump-sum can be a hedge against inflation. 
B)  The lump-sum option provides greater flexibility than other options. 
C)  You can invest the funds and perhaps earn a higher return. 
D)  Having access to the funds provides money for emergencies. 
E)  All of the above

Question 5

If you have a defined-benefit retirement plan through your place of employment,you are considered a(n)________;and as such,there is an income limit after which your IRA contributions are no longer tax deductible.

Accepted Answer

A)  restricted participant 
B)  deactivated participant 
C)  active participant 
D)  All of the above are correct. 
E)  Only A and C are correct. 
A)  restricted participant 
B)  deactivated participant 
C)  active participant 
D)  All of the above are correct. 
E)  Only A and C are correct.

Question 6

The good thing about retirement is you no longer have to pay income taxes.

Accepted Answer

A) True 
 B)False

Question 7

Social Security is a system where current workers' pay taxes that are used to pay current retirees' benefits.How is Social Security funded?

Accepted Answer

A)  Income taxes by all Americans 
B)  Payroll taxes on employees up to a salary cap 
C)  Payroll taxes on employers up to a salary cap 
D)  All of the above are correct. 
E)  Only B and C are correct. 
A)  Income taxes by all Americans 
B)  Payroll taxes on employees up to a salary cap 
C)  Payroll taxes on employers up to a salary cap 
D)  All of the above are correct. 
E)  Only B and C are correct.

Relate the pros and cons of defined-benefit plans.

One of the advantages to a traditional IRA is that it allows you to make a penalty-free withdrawal to purchase your first home.

When an employer makes pension fund contributions directly to a trustee who holds and invests those funds,the plan is said to be a(n)

Why might one want to select the lump-sum payment option for one's retirement funds?

If you have a defined-benefit retirement plan through your place of employment,you are considered a(n)________;and as such,there is an income limit after which your IRA contributions are no longer tax deductible.

The good thing about retirement is you no longer have to pay income taxes.

Social Security is a system where current workers' pay taxes that are used to pay current retirees' benefits.How is Social Security funded?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 15: Retirement Planning

Relate the pros and cons of defined-benefit plans.

One of the advantages to a traditional IRA is that it allows you to make a penalty-free withdrawal to purchase your first home.

When an employer makes pension fund contributions directly to a trustee who holds and invests those funds,the plan is said to be a(n)

Why might one want to select the lump-sum payment option for one's retirement funds?

If you have a defined-benefit retirement plan through your place of employment,you are considered a(n)________;and as such,there is an income limit after which your IRA contributions are no longer tax deductible.

The good thing about retirement is you no longer have to pay income taxes.

Social Security is a system where current workers' pay taxes that are used to pay current retirees' benefits.How is Social Security funded?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters